the state of the economy malaysia

8/14/2019 The State of the Economy Malaysia

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© 2008. Synovate Ltd. All rights reserved.

The concepts and ideas submitted to you herein are the intellectual property of

Synovate Ltd. They are strictly of confidential nature and are submitted to you under

the understanding that they are to be considered by you in the strictest of confidence

and that no use shall be made of the said concepts and ideas, including

communication to any third party without Synovate’s express prior consent and/or

payment of related professional services fees in full.

The State of the EconomyMalaysian consumers attitudes towards the

economy and prices

October 2008



1© Synovate 2008

Why is this all so important?- A timeline

• August 9th 2007 – Bad news from BNP Paribas triggered a sharp rise inthe cost of credit

• September 2007 – Northern Rock customers withdraw 1 billion poundssterling in a day (approx. RM6 billion)

• March 2008 – BN loses a number of states in parliamentary electionsleading to degree of political and economic uncertainty

• June 2008 – Malaysian pump prices rise to RM2.70 on the back of highglobal oil prices

• July 2008 – US Mortgage lender IndyMac collapses

• August 2008 – Synovate survey

AND SINCE THEN A BARRAGE OF ALMOST DAILY ECONOMICNEWS ALERTS !!



© Synovate 2008 2

Nearly 6500 interviews across 9 countries inAugust 2008



The Global Economy



© Synovate 2008 4

Q1: Which of the following statements was most applicable to your view on the current state of the economy in your country?

22

49

63

8

37 39

64

20

63

FranceSouth

AfricaBrazilMalaysia TaiwanJapan Russia TurkeyUSA

[Unit: %]

How bad is it ? If you live in a ‘developed’ economy, then

things are not considered to be getting better anytime soon!

The economy

is going

downhill andwill get worse

before it gets

better



© Synovate 2008 5


45

30

22

55

32

42

12

45

20

FranceSouth


[Unit: %]

Far higher level of optimism in ‘developing’ countries or is it

blind optimism?

The economy

is in a bad

patch but will

quickly get

better



© Synovate 2008 6


…going downhill and will

get worse before it getsbetter

….in a bad patch but willquickly get better

[Unit: %]

Actually it may be naivety – those that have been through

economic crises before may have learnt

The economy is………..35-49

RM1k-199915-24 50-64

RM999& below25-34

RM2k-3999

RM4k &above

58

4636 37 40

504752

17 1728 24 23 2421

14



© Synovate 2008 7

Q2: Have you changed any of the following monetary habits in the last six months?

Nett Change in

PeopleInvesting

Nett Change in

People

Saving-11

-28 -29

-9 -14

15

-2

-17

-38

France

South


[Unit: %]

A large decline in saving and investing as disposable income

becomes reduced with rising inflation costs

-18 -12-27 -21

-37 -53

-11

-35

-15



© 2008. Synovate Ltd. 8

Half of Malaysians

(49% net) are nowmore likely to check

the prices of food

items that they buy




Malaysians appear to be very prudent in comparison to

counterparts when it comes to spending on luxuries

81

52

59Compare prices first more

Less impulse buying

Spending less on luxuries 59

56

55

61

58

57

Malaysia Japan Taiwan

Q2: Have you changed any of the following monetary habits in the last six months?




Q3a: Have you had to make cuts in your spending in the past 6 months?

5862

75

40

70

61

80

6469

FranceSouth


[Unit: %]

But the reality is that spending cuts are evident wherever you

go…




18

13

12

11

10

10

6

5

Holiday / leisure travel

Branded Items

Meals with family / partner

Big ticket items e.g. TV

Foods that are treat

Meals with friends

Fuel for non work trips

High-tech gadgets

Q3b: What was the first item you gave up?

The travel industry in Malaysia is likely to be the hardest hit

- indeed this is a global phenomenon




Q5: When you think about the current state of the economy, what is your greatest fear? Name one.

Generally a climate of worry, although a proportion of

Malaysians still remain unconcerned about the state of theeconomy!

Malaysians Americans

I am worried about losing my job / household income earner losing job - 25%

Not being able to afford sufficient food for my family – 17%

Nothing, I’m not worried – 17%

Being able to afford mortgage / rent payments - 25%

I am worried about losing my job / household income earner losing job – 20%

Losing my investment money – 13%




58% of Malaysians have

changed a major life decision

due to the current economic

situation



© Synovate 2008 16

48

35

28

19

17

38

0 50 100

37

37

35

18

21

33

0 50 100

34

37

29

16

24

33

0 50 100

36

39

31

14

24

35

0 50 100

Better Same Worse

Personal Economic

Outlook

Country’s Economic

Outlook

Q6: Do you think your personal economic situation will get better or worse in the next 12 months?

Q7: How about the economic situation in your country? Do you think it will get better or worse on the next 12 months?

And the most affluent segment who largely believe their

personal situation will improve despite the overall climate

RM999 & below,

n = 123

RM1000 - 1999,

n = 176

RM2000 - 3999,

n = 262

RM4000 & above,

n = 246




And by mid 2008,

affluent Malaysians

had spent 12% more

on luxury goods

compared to one

year ago

- Particularly on

jewelry, watches and

clothesSource: PAX Malaysia




FINALLY –

despite

everything….53% of

Malaysians say

they are worried

but just can’t stop

spending all

together – the

highest out of the9 countries we

surveyed!



© 2008. Synovate Ltd. All rights reserved.

The concepts and ideas submitted to you herein are the intellectual property of

Synovate Ltd. They are strictly of confidential nature and are submitted to you under

the understanding that they are to be considered by you in the strictest of confidence

and that no use shall be made of the said concepts and ideas, including

communication to any third party without Synovate’s express prior consent and/or

payment of related professional services fees in full.

Thank You For Your

Attention.Our Curiosity Is All Yours.

© Synovate 2008

the state of the economy malaysia

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